After a century of attention for ‘watershed management’ there is still a remarkable lack of clear criteria and indicators of the hydrological functions that society expects to be met from water catchment areas. The lack of realistic expectations leads to large public investments in ‘reforestation’ that are unlikely to achieve value for the money spent. Hydrological functions of watersheds, given the rainfall that the area receives, include the capacity to (1) Transmit water, (2) Buffer peak rain events, (3) Release water gradually, (4) Maintain water quality, (5) Reduce mass wasting (such as landslides), (6) Reduce soil erosion, and (7) Maintain micro climate.